The Board of Lianhua Supermarket Holdings Co., Ltd. informed the Shareholders and potential investors that the Group is expected to incur net loss attributable to owners of the Company of approximately RMB 750 million to RMB 850 million for the year ended 31 December 2023 as compared to the audited net loss attributable to owners of the Company of approximately RMB 212 million for the year ended 31 December 2022, which is mainly due to (i) the Group recognized share of loss of an associate of the Company, (ii) the store- closure adjustment on the of certain hypermarkets in Anhui and Jiangsu region, which is losses incurred as a result of in line with the Group's strategic development, and (iii) the decline in performance/sales arising from various factors such as the decreased number of in-store customers that generally encountered by the retailing industries as a result of the market conditions.